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irie56 t1_jef37lx wrote

always max out employee contributions

Open brokerage and ROTH (fidelity is great, cheap and easy) Or Schwab although I find them a little slow sometimes. Although I think schwab just offered a High Yield , insured savings.

Moving cash savings to a high yield account or brokerage and into a treasury fund where you can make 4-5% interest.

Max out ROTH (while you can) ~$6500/year (double check that)

start auto contributions to a fidelity ZERO fund. Set it and forget it. Don't look at the market, don't bother with CNBC or picking stocks. Just do it rain or shine forever. Make sure to check all boxes that say reinvest dividends. Depending on your need for cash - place a chunk of your savings in the fund or do it $2-$5k/month until you hit the amount you want to invest.

If you comment is in regards to buying or selling stock options - uhh let that dream go until you have more experience in the market.

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rougebit OP t1_jefb1of wrote

How much cash savings should I start off with in a high yield savings? Are they FDIC insured?

For the fidelity ZERO fund, is there a certain target age I should do for my ROTH? How about the backdoor roth?

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irie56 t1_jefel4n wrote

Most high yield savings accounts are FDIC insured. Treasury funds are not. I use AMEX for my HYS.

Cash is only for what you could need in case of emergency or would need quickly. That could be regular savings or in some cases you can transfer from HYS to checking in a day. Consider your lifestyle and is there a circumstance where you need several thousand bucks today or tomorrow? If not lock it away and earn money while you can.

There are a handful of zero funds. Typically with a very long investment time period you start with higher risk - mostly stock or a higher concentration on stocks. (= higher volatility) or just go S&P500

Backdoor roth is for when you earn too much to contribute to roth. You aren't there yet

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rougebit OP t1_jefh7lv wrote

Thanks, I actually looked into Marcus as a HYS and I was also able to get a refer code to get it to 4.5x for a few months then back to 3.5x.

You're actually right, there's no need to have that much money sitting in a regular savings when it could be somewhere else. I've also maxed out my IRA for the year - thanks for the tips!

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